New York Issues 109 More Adult-Use Cannabis Licenses

Governor Kathy Hochul today announced the New York State Cannabis Control Board (CCB) took substantial steps to advance the state’s cannabis regulatory framework during this month’s board meeting, addressing several key topics: license approvals, market updates, and enforcement updates.

“New York is building a robust and equitable legal market that is driving significant economic growth for our communities,” Governor Hochul said. "The issuance of 109 additional adult-use licenses is just one step in developing New York’s nation-leading cannabis industry.”

The CCB authorized the issuance of 109 adult-use cannabis licenses spanning the supply chain, encompassing microbusinesses, cultivators, processors, distributors, and retail dispensaries. This move paves the way for entrepreneurs and businesses to enter the budding adult-use cannabis market, driving economic growth and fostering innovation.

The breakdown of the 109 license types approved today includes:

• Adult-Use Cultivator License: 23
• Adult-Use Distributor License: 20
• Adult-Use Microbusiness License: 23
• Adult-Use Processor License: 22
• Adult-Use Retail Dispensary License: 21

58 out of the 109 are transitioning conditional cultivators or conditional processors.

Enforcement Task Force Update

At today's meeting, the New York State Office of Cannabis Management (OCM) presented updates to the CCB regarding the State's ongoing efforts to enforce against the illicit cannabis market. The OCM emphasized that the state's commitment to shutting down unlicensed cannabis storefronts has led to a 50 percent increase in legal cannabis sales in downstate areas, like New York City, affected by the Task Force’s enforcement activities. This crackdown is crucial in ensuring that the legal market thrives and that consumers have access to safer, tested, regulated products.

To date, the OCM reported that over 323 inspections have been conducted by State Officials, resulting in the seizure of more than 4,800 pounds of illicit cannabis products, valued at nearly $30 million. These enforcement actions are part of a broader strategy to eliminate the black market and support the growth of licensed cannabis businesses. As of Tuesday, July 9, 2024, 164 illicit stores have been padlocked. Moreover, 252 Notices of Violation have been issued, and 76 hearings have been conducted.

Additionally, the OCM's Intergovernmental Affairs team, in coordination with the Office of General Counsel, has held several briefings over the past few weeks for New York City elected officials and Community Boards. These briefings aim to keep key stakeholders informed about the ongoing regulatory and enforcement measures, ensuring that local leaders are engaged and supportive of the efforts to create a sustainable and equitable cannabis industry in New York State.

Packaging, Labeling, Marketing, and Advertising (PLMA) Regulations Amended

In addition to issuing licenses, the CCB approved a resolution to file proposed amendments to the Packaging, Labeling, Marketing, and Advertising (PLMA) regulations, which were originally adopted in March 2023. The proposed amendments consider recommendations made by licensees and other stakeholder groups. By engaging with stakeholders and understanding their challenges, the Office has crafted these amendments to be responsive to the realities of the cannabis industry while upholding a firm commitment to protecting public health and safety.

Amendments to the packaging and labeling regulations were designed to help streamline OCM operations by reducing common causes of statements of findings for which there is no risk to health and safety; provide technical edits to the regulations to align with the medical cannabis program; codify changes previously implemented in guidance only and clarify existing provisions. Further changes address the environmental sustainability of packaging, such as encouraging the reuse of packaging, implementing policies that help reduce single-use plastic, and ensuring requirements are feasible for licensees by allowing a phase-in period and plastic alternative exemptions for components of packaging where sustainable alternatives are not yet available in the market.

Amendments to the marketing and advertising regulations were implemented to ensure that licensees remain competitive, particularly in an environment with the widespread proliferation of illicit cannabis businesses while maintaining New York State’s commitment to protect public health and safety. Changes have provided for new allowances for outdoor signage for retail dispensaries, including the removal of the two signs per licensee limit to allow for more signage and storefront awareness; new allowances for promotions and product discounts, as well as adjusted audience composition requirements for certain cannabis advertisements to conform to the proportion of New York State’s population that is 21 and older.

These changes to the PLMA regulations reflect OCM’s commitment to balancing the policy goals of protecting public health and safety, fostering a sustainable cannabis industry and creating a fair, safe, and informed market for cannabis consumers and businesses alike.

Office of Cannabis Management Executive Deputy Director and Acting Executive Director Felicia A. B. Reid said, “In these first thirty days at OCM, I continue to be inspired by the OCM team’s deep commitment and drive to advancing the agency’s mission with this most recent batch of licenses for Board approval. I appreciate the rigorous work of the Board, under Chair Wright’s leadership, in their review and today’s approvals. OCM best serves the cannabis community and New Yorkers by listening to what stakeholders need to thrive, and my hope is that today’s much-needed updates to our PMLA regulations will enhance licensees’ ability to compete and thrive in the cannabis market.”

New York State Cannabis Control Board Chair Tremaine Wright said, “We remain dedicated to fostering a thriving and equitable cannabis market in New York by listening to our industry partners and adapting our regulations to meet their needs. The proposed packaging, labeling, marketing and advertising regulatory amendments reflect our commitment to ensuring safety while easing operational burdens. By incorporating feedback from licensees and a diverse array of stakeholders, we are taking meaningful steps to enhance New York State’s cannabis regulatory framework and support the growth of a responsible and inclusive cannabis industry.”

Market and Social Economic Equity Update: New York's Growing Cannabis Industry

The Office of Cannabis Management is proud to announce the robust growth and dynamic advancements in New York's cannabis industry. Projections showed that 2024 cannabis sales will exceed $200 million by early June, The Office is delighted to share that as in June alone, sales surged by $71 million, reaching a total of $421.2 million to date.

A key driver of this success is the Social and Economic Equity (SEE) program, which continues to promote inclusivity and opportunity within the industry. Impressively, an analysis of the composition of today’s adult-use retail dispensary licensees indicates that a full 55 percent are SEE-owned businesses, 37 percent are minority-owned business, and 40 percent are women-owned businesses.

Following today’s Board meeting, the total number of adult-use licenses issued in 2024 will climb to 614, with a notable 55 percent held by SEE licensees in aggregate. This reflects the program's commitment to fostering diversity and supporting underrepresented groups. After the Office recommended to the Board the 109 adult-use licenses to be awarded at today’s Board Meeting, it analyzed the composition across the supply chain. The Office is pleased to report that 53 (49 percent) of today’s licensees are social and economic equity (SEE) owned businesses, 24 (42 percent) are women-owned businesses and 13 (25 percent) are minority-owned businesses.

To date there are 144 dispensaries open for business across the Empire State. A full list of New York’s licensed, operational adult-use cannabis retailers is available here.